(Reuters) – British renewable power generator and network operator SSE Plc on Tuesday upgraded its outlook for full-year 2021/22 adjusted earnings to at least 90 pence from at least 83 pence, the company said in a third-quarter trading update.
“This reflects the strength and stability provided by SSE’s balanced mix of regulated and market-facing businesses, including good financial performance from flexible thermal and hydro plant which is more than offsetting lower than planned renewables output,” it added.
Renewables output in the first nine months was 19% below plan, mostly owing to a dry and wind still summer, SSE said.
Electricity output from its gas-fired power plants was down 14% year-on-year but continues to provide valuable balancing services in an increasing renewables-led system.
“Its profitability is therefore less dependent on the volume of its output and financial performance for the year is expected to be ahead of plan,” SSE said.
SSE said it remains on track for its full year 2021/22 capex guidance in excess of 2 billion pounds ($2.70 billion) and it expected net debt of around 9 bln pounds at the end of the business year on March 31.
The latter assumed proceeds from the disposal of its 33.3% stake in Scotia Gas Networks (SGN) being received prior to the year-end.
In November, the company announced a hike in its green investment spending plans as it turns its focus to renewable power and networks.
($1 = 0.7397 pounds)
(Reporting by Nora Buli in Oslo; editing by Carmel Crimmins and Louise Heavens)
